New Delhi, India | February 1, 2026
Ahead of the Union Budget, India’s bullion market witnessed a sharp sell-off as gold and silver prices plunged heavily on Sunday. Trading remained active on the commodity exchange despite it being a weekend, and prices collapsed soon after the opening bell.
On the Multi Commodity Exchange of India (MCX), silver prices saw the steepest fall, dropping by nearly ₹27,000 per kilogram, while gold prices slid by more than ₹13,000 per 10 grams, triggering concern among investors.
📉 Heavy Selling on Budget Day Hits Precious Metals
Following a sharp decline last week, gold and silver extended their losses on Budget Day as uncertainty surrounding fiscal announcements, weak global cues, and profit booking continued to weigh on market sentiment.
In early trade, silver prices collapsed sharply, causing panic across the bullion market. Gold also failed to escape the selling pressure, registering a steep decline as soon as trading began. According to market estimates, gold and silver futures declined by up to 9% ahead of the presentation of the Union Budget 2026–27.
🪙 Silver Price Crash: From Record High to Sharp Fall
The fall in silver prices has been particularly dramatic. Just days earlier, silver had created history by crossing the ₹4 lakh per kilogram mark for the first time.
On Thursday, silver futures for the March 5 expiry surged to a lifetime high of ₹4,20,048 per kg
The very next session, prices crashed by ₹1.28 lakh, settling at ₹2,91,922 per kg
On Budget Day Sunday, silver fell further by nearly 9%, or ₹26,273, to around ₹2,65,652 per kg
The sharp reversal has left traders and retail investors cautious about near-term price movements.
🏆 Gold Prices Also Under Pressure
Gold prices mirrored silver’s weakness. On MCX, 24-carat gold (April 2 expiry) had touched a historic high of ₹1,93,096 per 10 grams on Thursday before witnessing an aggressive sell-off.
Gold plunged by ₹42,247 to settle at ₹1,50,849 per 10 grams
On Sunday, fresh selling dragged prices down by over 8.8%
Gold dropped by approximately ₹13,711, trading near ₹1,38,634 per 10 grams
📊 Why Was the Fall Expected?
Market experts say the correction was largely anticipated. Since the Union Budget is being presented on a Sunday this year, commodity markets remained open, allowing traders to react immediately.
Analysts noted that last week’s steep correction had already weakened investor sentiment. As a result, Budget Day selling pressure intensified, validating earlier expectations of heightened volatility in precious metals futures.
